Veterinary Industry Boom: $157 Billion Pet Market and What It Means for Your Practice
The U.S. pet industry continues to experience significant growth, with expenditures in 2024 reaching an impressive $152 billion, and projections suggesting it will exceed $157 billion in 2025. This surge is driven by increasing pet ownership across the country and a shift in consumer behavior, particularly among Millennials, who now represent the largest group of pet owners in the U.S. Their influence is reshaping market trends and driving new demands in pet products and services.
According to the American Pet Products Association (APPA), the largest portion of the 2024 expenditure, $65.8 billion, went to pet food and treats, reflecting a strong demand for high-quality nutrition products. Following this, supplies, live animals, and over-the-counter medicine accounted for $33.3 billion, while veterinary care, which includes routine visits and surgical procedures, contributed $39.8 billion. The other services category, which encompasses grooming, boarding, training, insurance, pet sitting, and walking, generated $13.0 billion.
In 2025, projections indicate continued growth in nearly all categories, with pet food and treats expected to reach $67.8 billion, supplies increasing to $34.3 billion, and veterinary care climbing to $41.4 billion. This continued upward trend signals the growing importance of pets in the lives of U.S. households and the expanding role of pet-related industries in the economy.
As the industry evolves, there is a clear shift toward products that align with the values of Millennial pet owners, who make up 30% of the pet-owning population. Millennials are particularly focused on sustainability, ethical production practices, and high-quality pet care products. Their preference for eco-friendly and transparent brands is driving manufacturers to adapt their offerings. Many pet food brands, for example, are moving toward using more natural ingredients and offering packaging that is recyclable or biodegradable.
"Millennials' deep bond with their pets is influencing market trends," says Dr. Jill Lopez, CEO of Vet Candy. "92% of Millennial pet owners value their pets' health just as much as their own, and they are willing to invest in products that align with their values of quality, sustainability, and ethical practices."
Dr. Lopez highlights the importance of understanding this generational shift in order for brands to remain competitive. "It's not just about offering a product—it's about creating a brand that resonates with the values of Millennial consumers. If a product can’t align with their commitment to sustainability or animal welfare, they won’t buy it. Transparency and ethical practices are more important than ever."
In addition to this demographic shift, technological advancements are also playing a pivotal role in shaping the pet industry. Dr. Lopez points out that "Automated medical record management systems are revolutionizing the way veterinary practices operate. These innovations streamline patient care, making it more efficient, accurate, and personalized."
Technologies like these are transforming how veterinary practices interact with clients and pets, allowing for quicker diagnoses, better follow-up care, and enhanced overall efficiency. For instance, the rise of telemedicine in veterinary care allows pet owners to consult with veterinarians remotely, making healthcare more accessible for pets, especially in rural or underserved areas. Moreover, advancements in wearable technology for pets, such as GPS collars and health monitoring devices, provide pet owners and veterinarians with real-time data to track the well-being of pets.
The rise of these technologies presents new opportunities for pet product brands to innovate. Wearable devices that track pet activity or health metrics are becoming increasingly popular, particularly among Millennial pet owners who want to ensure their pets' health is closely monitored. Brands that can incorporate these technological solutions into their offerings will likely see increased consumer loyalty.
Dr. Lopez also underscores the importance of responding to the changing landscape of pet ownership. "As the industry grows, manufacturers and pet product brands need to be agile. They must keep pace with consumer demands for transparency, sustainability, and innovation. The companies that succeed will be those that not only offer quality products but also create a lasting emotional connection with pet owners through shared values."
In summary, the U.S. pet industry is expanding rapidly, driven by a combination of increasing pet ownership, particularly among Millennials, and shifting consumer preferences for ethical, sustainable, and high-quality products. For manufacturers and pet product brands, the key to success lies in understanding these evolving trends and adapting to meet the demands of today’s pet owners, who are not just seeking products for their pets but are looking for brands they can trust and connect with on a deeper level.
